Consumers in UAE, Saudi Arabia slash spending as COVID-19 hits finances

Consumers in UAE, Saudi Arabia slash spending as COVID-19 hits finances

“Many Saudi shoppers are struggling with the current economic crisis… Consumers are feeling increasingly pressured by the financial implications of the pandemic, which in turn has brought about changes in the way they shop,” Choueiri Group said in its report.Consumer spending is historically one of the major drivers for economic growth, accounting for about 45 percent of the UAE's gross domestic product (GDP) as of 2017, according to Dubai Chamber of Commerce.  Spending was previously expected to exceed $261 billion in 2021, up from $183 billion in 2016.However, the latest data suggest that consumer spending across the world has plummeted as people's habits changed as a result of the coronavirus pandemic. “As consumers grapple with uncertainty, their buying behaviour becomes more erratic. What is clear… is that they have reduced spending on all non-essential products and services,” the World Economic Forum (WEF) said in a report this year.“Beyond impacting some of the factors that determine consumer spend – such as consumer confidence, unemployment levels, or the cost of living – the COVID-19 pandemic has also drastically altered how and where consumers choose to spend their hard-earned cash,” WEF said.It noted that the industries that are in the red, or those